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In a statement, the Commonwealth said it had demanded that Fiji commit, by 1 September, to rejoining negotiations with the opposition and to holding credible elections by October 2010.
Mr Sharma said that although Cmdr Bainimarama had reaffirmed "his commitment to the principles of the Commonwealth", he had not met the terms of the 1 September deadline.
He said Fiji's suspension was therefore "a step the Commonwealth is now obliged to take, and one that it takes in sorrow".
Cmdr Bainimarama repeated his opposition to the 2010 election timetable when he spoke to commercial radio earlier on Tuesday, reported AFP news agency.
"The Fiji government believes the roadmap is the only path to ensuring sustainable and true democracy, which includes... to have elections in 2014," he said.
"We will remain with that."